DWP Pension Credit - full list of everything that counts as income against benefits
by Samantha Leathers · PlymouthLiveAs thousands of Brits apply for Pension Credit in the hopes of retaining their Winter Fuel Payments this year, many might believe they’re not eligible because they have a weekly income above £218.15 for single people or over £332.95 in a couple. However, some forms of income aren’t counted for the means-tested benefit.
The following forms of income, savings and investments are added together to calculate your weekly income:
- State pension
- Workplace, private or other pensions
- Employment earnings
- Self-employment earnings
- Most social security benefits like Carer’s Allowance and Tax Credits
- Savings or investments over £10,000
If you have deferred your pension, whether this be state, personal or workplace, the amount you would have received if you hadn’t deferred it will still be counted towards your income. Additionally, for every £500 you have saved or invested over £10,000 is counted as £1 of income.
Brits can still be eligible for Pension Credit if they receive more than the weekly thresholds as the following benefits are not actually counted towards your income total:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
Pension Credit is made up of two aspects, which you can claim independent of each other. The first of which, the Guarantee Credit, relies on your income calculation and will top up your weekly income to £218.15 for single people or £332.95 for couples.
The second aspect, Savings Credit, is for people with substantial savings or multiple pension incomes. To be eligible, you must have reached the state pension age before April 6, 2016 and have saved some money for retirement. Savings Credit offers a slightly lower rate at £17.01 for single people and £19.04 a week for couples based on how much income you get from your savings, according to MSE.